The Data-Powered Playbook for Midsized Contractors

"This stuff is only for the big guys, right?!!"

Last week we recapped the MEP Innovation Conference keynote panel: Becoming a Data-Empowered Contractor.

The three panelists companies had annual construction volumes in the hundreds of millions to billions of dollars. They have the luxury of resources that a construction company 1/10 the size doesn't have.

But what if the constraints were actually an advantage?

Perhaps it's not about resources, but the resourcefulness.

In this Data-Powered Construction Playbook, we'll outline how small to mid-sized contractors can use their size and agility to their advantage. How they can leverage the technology they have today to unlock real business results.

Guiding Principles

Midsized construction companies often have some IT resources but still struggle with technology.

This playbook is built around key core truths:

• Clarity is power.

• A hard problem, well understood, is already half solved.

• Every problem solved improves the business.

Small, repeated improvements compound to create large impact - improving the operation and the bottom line.

Let's dive in!

Step 1: Start with a “Worthy Problem”

What’s costing you the most time, money, or risk?

Most initiatives fail because they start with the technology objective instead of the business objective.

Instead of trying to digitize, integrate, or swap this for that "silver bullet" -  identify a operational bottleneck or chokepoint that, when solved, creates measurable business impact.

Cheaper. Faster. Better.

These outcomes can all be measured in $$$ to the bottom line.

It's easier to communicate the "why" driving a business improvement initiative. The “why” is what aligns and galvanizes a team to execute successfully.

Data isn’t valuable on its own. What matters is how it impacts your business.

❓ What’s the biggest bottleneck that’s slowing us down or costing us money?

❓ If we solved this problem, how much would it improve our margins or efficiency?

Common high-impact problems for small construction firms:

• Lost time & rework: Manual data entry and errors, late approvals, inconsistent tracking.

• Cash flow headaches: Unbilled work, slow approvals, missing invoice data.

• Job profitability blind spots: No real-time insight into which projects make/lose money.

🎯 Key Principle: Solving the right problem creates real business impact.

Action-Quick Win: Pick one high-value pain point to focus on — don’t try to “fix everything” at once.

Step 2: Data Elevation & Flow - Not Silos

Harnessing data isn’t just about collecting and storing — it’s about elevating how data is used to drive better decisions and create real business results.

This is the essence of Data Elevation:

Most construction firms get stuck between collection and flow — data exists but isn’t accessible or usable.

Elevating data means moving from just having data to leveraging it for smarter operations, cost savings, and business growth.

How to Elevate Your Data (Without Overcomplicating It):

1. Clarify What Matters: Define the 3-5 key business metrics that actually drive profit and efficiency.

2. Simplify Access: Ensure the right people can access the right data, in real time, without chasing emails and spreadsheets.

3. Automate Low-Value Work: Reduce manual entry, duplicate work, and data delays with simple automation.

4. Turn Insight into Action: Build a process where data is reviewed monthly to make operational improvements.

5. Measure Impact: Track how changes based on data improve profitability, efficiency, and decision-making speed.

🎯 Key Principle: Data isn't power — elevated data is power. Data is only valuable when it drives action and impact.

Action-Quick Win: Identify where data is getting lost, duplicated, or stuck in silos. These are opportunities for quick data elevation wins.

Step 3: Match Information to the Need (With the Tech You Already Have)

Technology should serve the business, not the other way around.

❌ Wrong approach: Buying software first, then trying to “figure out how to use it.”

✅ Right approach: Understanding the problem first, then identifying the best path to resolving it.

The signature moment in the panel discussion was the story about the leadership team suddenly realizing that a project was in trouble. The outcome: $1.5 million dollar loss.

This was their wake-up call.

They needed better project visibility.

The result?

They haven't lost money on a project since. No last minute scrambling or nasty surprises.

🎯 Key Principle: In IT - the Information is more important than the Technology.

I > T

Technology's job is to improve information. It's information that has the big job to do in the business.

Action-Quick Win: Identify where "improved information" would make a measurable impact in your operation. What information would improve project outcomes?

Step 4: Small Wins Repeated = Big Impact—The Compounding Effect of Improvements

Success with data isn’t about one big transformation — it’s about stacking small, high-value wins.

For example:

1. First win → Automating project setup → Budgets and cost-codes

2. Next win → Eliminating manual time entry → Saves 10+ administrative hours per week.

3. Next win → Automating and streamlining actuals to budget labor tracking → Accelerates and improves project insight.

🎯 Key Principle: Small successive improvements create compounding gains and foster a culture of innovation.

Action-Quick Win: Prove it to your self with some back of the envelope math. What would 2-3% margin expansion look like for your company? Divide that additional profit amount by 4-5 improvement initiatives across the year.

Does it seam feasible?

Is it worth it?

[Don't skip this step. Convincing yourself of the feasibility is vital]

Step 5: On-Demand Expertise vs. Building an In-House Team

Many small contractors struggle because they try to tackle data challenges without adequate technical resources.

They may have a part-time "IT guy" or use a generalist IT outsourcing firm that doesn't "understand construction".

They lament not having the technical resources of the "big guys".

What may not be appreciated are the downsides of large IT departments - how at times IT can be at odds with operations. Large often equates to slow.

Agility has it's advantages. In this case, bringing in on-demand expertise:

• Building an in-house data team: Costly, slow, and not always necessary.

• On-demand expertise: Faster, more flexible, and focused on real business impact.

🎯 Key Principle: On-demand expertise can be more effective and efficient in delivering technical initiatives that align to the business need.

Before hiring an in-house IT team, test on-demand expertise with a short-term data improvement sprint (4-6 weeks). Pick one high-value challenge — reducing manual data entry, streamlining job cost reporting, or accelerating client billing.

Action-Quick Win: Identify a key operational pain point and engage on-demand expertise for a short-term, high-impact sprint. Measure results and decide next steps based on impact.

The Final Play: Taking Action Now

The Playbook in Action:

1. Find Your "Worthy" High-Impact Problem: Identify a bottleneck where solving it creates measurable business impact.

2. Fix Flow First to Elevate Data:Remove silos, streamline chokepoints, and turn raw data into actionable insights before investing in new tech.

3. Match Information to the Need: Prioritize clarity over complexity; technology should serve the business, not the other way around.

4. Start Small & Build Momentum: Focus on quick, high-impact wins that generate results and drive long-term adoption.

5. Leverage On-Demand Expertise: Optimize resource allocation by tapping into external specialists instead of costly full-time hires.

🚀 Ready to take action? Let’s discuss how data-powered construction can unlock real business results for your company.

Chris

Founder & CEO, Aedo

Your Data Business Improvement Team, On-Demand